The document provides background information on the Indian aluminum industry. It discusses how aluminum was discovered in 1886 and how the Aluminum Corporation of India was founded in 1937 as the first attempt to manufacture aluminum in India. The Indian aluminum industry is represented by the Aluminum Association of India. The primary market structure of the Indian aluminum industry is oligopolistic, dominated by three major producers - Hindalco, Vedanta Aluminum, and Nalco. The secondary aluminum sector is larger and more fragmented with around 3,500 smaller producers. The document goes on to provide details on the extraction and production processes of aluminum as well as the various primary and secondary product types.

1. INDIAN
ALUMINUM
INDUSTRY
12. Aakash Mahajan
14. Mitesh Munankar
15, Yash Mutatkar
BATCH 1 GROUP 3 GUIDE
Prof. Varsha Joglekar

2. Background
Only in 1886 was Aluminium discovered. Although bauxite, the primary ore of Aluminium, is found
throughout the earth's crust, large concentrations of it are uncommon.
AAI was founded in 1981 and is registered under the Karnataka Societies Registration Act.
Recognized and supported by the Govt. of India through various Ministries, and in particular,
Ministry of Mines.
The ONLY ASSOCIATION representing entire spectrum of Indian Aluminium Industry, Primary
Producers, Downstream Manufacturers, Equipment & Product Manufacturers, Endusers,
Technologist, Metallurgists, Researchers R&D Organisations etc.

3. Background
Internationally recognized and a member of the International Body of Aluminium Associations
When the Aluminium Corporation of India was founded in 1937, it was the first attempt to
manufacture aluminium in India. Since then the industry has been seeing growth and till now has
never seen a dip in the market.
For all the reasons mentioned above this industry has been serving India to grow financially.
As this Industry has bought so many opportunities for India’s well-being and has served as a
promising industry.
For growth in various sectors, we are selecting the Aluminium industry to be studied and to learn
and know its importance for our future growth.

4. Introduction
What is Aluminium? What is its importance? How is it extracted? What are the products?
How is the Aluminium Industry in India? What is its market structure? Evolution of the industry?
Who are the market players?
How is the Costing made? How pricing is Decided? What are the Demand, Consumption, supply and
Distribution? What are the turnovers and margin and factors affecting the growth?
Technological Factors, issues and challenges faced by the industry?Sustainability and upcoming
Innovations.
Key reforms in India, Growth of the Industry.
What does this Presentation want to Accomplish?

5. What is Aluminium?
Aluminum (Al), also spelt aluminium, chemical element, a
lightweight silvery white metal . Aluminum is the most
abundant metallic element in Earth’s crust and the most
widely used nonferrous metal. Because of its chemical activity,
aluminum never occurs in the metallic form in nature, but
its compounds are present to a greater or lesser extent in
almost all rocks, vegetation, and animals. Aluminum is
concentrated in the outer 16 km (10 miles) of Earth’s crust, of
which it constitutes about 8 percent by weight; it is exceeded
in amount only by oxygen and silicon. The name aluminum is
derived from the Latin word alumen, used to describe potash
alum, or aluminum potassium sulfate.

6. Aluminum Importance.
Aluminium is used in a huge variety of products including cans, foils, kitchen utensils, window frames, beer kegs
and aeroplane parts. This is because of its particular properties. It has low density, is non-toxic, has a high
thermal conductivity, has excellent corrosion resistance and can be easily cast, machined and formed. It is also
non-magnetic and non-sparking. It is the second most malleable metal and the sixth most ductile.
It is often used as an alloy because aluminium itself is not particularly strong. Alloys with copper, manganese,
magnesium and silicon are lightweight but strong. They are very important in the construction of aeroplanes and
other forms of transport.
Aluminium is a good electrical conductor and is often used in electrical transmission lines. It is cheaper than
copper and weight for weight is almost twice as good a conductor.
When evaporated in a vacuum, aluminium forms a highly reflective coating for both light and heat. It does not
deteriorate, like a silver coating would. These aluminium coatings have many uses, including telescope mirrors,
decorative paper, packages and toys.

7. How is it Extracted?

8. Extraction explained
The raw material from which Aluminum is made is found in many tropical areas. The aluminum ore, known as Bauxite, lies close to the surface in the rich red Earth
that is within easy reach of giant shuffles and waiting trucks to handle the vast quantities of bauxite.
Here, the bauxite undergoes an intricate chemical process. First, the bauxite is mixed with Water (H2O), Lime - Calcium Hydroxide [Ca (OH)2] and Soda Ash -
Sodium Carbonate [Na2CO3]. Then it is wet ground, blended with a solution of Caustic Soda - Sodium Hydroxide (NaOH) and transferred to digester tanks. Under
steam pressure, the alumina dissolves out of the boxy, forming Sodium Aluminate {Na [Al (OH)4]}. The impurities remain in solid form and the sodium Aluminate is
separated from them in a series of tanks in which the heavier impurities settle, the relatively clear liquid is drawn off the top and piped to filter presses which
remove the finer impurities suspended in the liquid.
Then, in six storey high tanks, the solution of Sodium Aluminate is agitated by compressed air and seeded with Aluminum Trihydrate. This encourages the
formation of Aluminum Hydroxide crystals, which precipitate to the bottom of the tanks. Next, the crystals are thoroughly washed and heated to 200-degree
temperatures and long Rotary kilns.This drives off the free and combined water and the result is a white powder aluminum oxide known as alumina. The alumina
is shipped in drain load lots to Kaiser Aluminum's reduction plants for processing to metallic aluminum. The reduction process requires vast amounts of electrical
energy that can come from hydroelectric power, from using coal, or by using natural gas as a fuel source. But regardless of the power source of electrical energy,
the reduction process is the same. The alumina is put into an electrolytic bath of molten cryolite into which a carbon electrode is suspended.
A molecule of alumina is made up of three atoms of oxygen holding past to two atoms of metallic aluminum. Electrical energy freezes the aluminum atoms from
the oxygen atoms and the molten aluminum sinks to the bottom of the bath. Periodically, the molten aluminum is siphoned from the pots, placed in holding
furnaces and poured into ingots. This primary aluminum, in the form of Ingots, Billets, Wire Rods, Wire Bars is shipped to customers either in pure or alloyed
forms. And the Secondary products are recycled from Aluminum scrap which are mostly used in casting and as a deoxidizing material.

9. Types of Products.
Primary products.
Primary production involves making aluminium products from raw materials or ingots, which is highly energy-
intensive, especially electricity intensive. Ingots, Billets, Wire Bars, and Wire rods are some primary products.
Secondary Products
the process of recycling aluminium scrap into Aluminum that can be used again—an environmentally sound
process that is 92% more energy efficient than primary production. Secondary production involves recycling
aluminium scrap to form new products, a significantly less energy-intensive process.

10. Types of Products.
Aluminum rolled and flat-rolled products:
Rolled Aluminum is used in a wide range of industries and applications such as aircrafts, aerospace, railways,
roadways, engineering, electricals, food, packaging and printing
 Pattern/Checkered Sheet
 Sheets
 Closure Stock
 Household Foil
 Semi-Rigid Container (SRC) Foil plates
Aluminum extrusion:
In the extrusion process, heated aluminum is forced through the shaped opening of a die. Custom dies can be created
based on the profile you need the extrusion to have. Profiles can be anodized, powder coated, or receive other
finishing. They can be drilled, cut, machined, stamped, and more.
Extrusion shapes like channels, angles, or round/rectangular tubing can be very useful for building indoor and
outdoor structures. They can also be used for basic architectural trims. We offer these profiles in a range of different
alloys and with a variety of finishing options to choose from.

11. Market structure of Indian Aluminum
Industry:
Primary marketThe Indian Aluminum industry is oligopolistic: the three main producers, Hindalco, Vedanta Aluminum, Nalco, enjoy
overwhelming market share. The barriers to entry are significantly high. This is mainly because the industry is highly capital intensive. The
two competitors of Nalco have expanded by acquiring existing companies. While Hindalco had acquired another private company,NALCO is
the sole Aluminum producing company in the public sector. Vedanta acquisition of BALCO and MALCO has significantly increasedits
capacity as an integrated producer of Aluminum.
The secondary Aluminum sector constitutes nearly 40% of the Aluminum consumed in India. The sector is largely cluttered and
unorganized, with the presence of around 3500 producers. Since the cost of primary Aluminum smelting is high in India, the secondary
producers depend upon imports of Aluminum scrap from the Middle East, China, South Africa, China, Taiwan, Nigeria, Spain, Australia,
Malaysia and the EU. Secondary Aluminum processing units are concentrated mostly in the Western and Northern regions of the country.
The imported scrap is used by domestic foundry and extrusion sectors to produce items largely for the automotive sector. About 56 per
cent of the country’s Aluminum imports is made up of scrap. With a 25 per cent share, Saudi Arabia and UAE are the top Aluminum scrap
exporters to India, followed by the Netherlands and Australia.
Some of the leading producers of secondary Aluminum products in India are Associated Aluminum India Pvt Ltd, Century Metal Recycling
Ltd, Century N F Castings, Indo ALNUYS Industries, Minex Metallurgical Company, Namo Alloys Pvt Ltd and SUNALCO Alloys to name just a
few.
Next, there are some big players in secondary Aluminum business like Aditya Birla Group owned Hindalco Industries and Jindal Aluminum
Ltd (JAL).

12. Market structure of Indian Aluminum
Industry:
The India Aluminum extrusion market
The India aluminum extrusion market size was valued at $1.3 billion in 2019, and is projected to reach
$2.5 billion by 2027, growing at a CAGR of 8.3% from 2020 to 2027.
The market is primarily driven by the extensive utilization of aluminum extrusion in the production of
motor vehicles in India. Apart from this, the leading manufacturers are focusing on the manufacturing of
lightweight cars to maintain fuel economy. They are substituting steel for aluminum without
compromising on the design and size, which is positively influencing the market growth in the country.
The burgeoning real estate and manufacturing sectors are anticipated to enhance the demand for
extruded aluminum in the coming years.

13. Evolution of Aluminum industry:
Among all the industries, Aluminum industry is perhaps youngest. Aluminum was discovered only in
1886. Although bauxite, the principal ore of Aluminum, is abundant all over the earth’s crust, its
concentration of sizable amount is rare.
First attempt to manufacture Aluminum in India was started when Aluminum Corporation of India
was formed in 1937. But its first venture to produce Aluminum was delayed. The history of Aluminum
industry in India can be traced in the following years:
1938: Indian Aluminum Company started its production at Allupuram in Kerala. To give a moral as well
as financial boost to the industry, the Government announced in 1940 several facilities including
import tax exemption and imposition of heavy duty on imported Aluminum.
1942: Aluminum Corporation of India was able to start its production at Jaykeynagar in West Bengal.

14. Evolution of Aluminum industry:
Second Five-Year Plan: Aluminum plants setup during Second Five Year Plan were:
Indian Aluminum Company (INDAL): It started fabrication of sheets from imported alumina in 1943
and production of alumina from indigenous bauxite in 1948.
Hindustan Aluminum Company (HINDALCO): At Renukoot, UP- It was set up in 1958, it is the largest
integrated primary producer of Aluminum and semi-fabricated products in India.
Third Five Year Plan:
Aluminum plants setup during Third Five Year Plan were:
Madras Aluminum company (MALCO): Operating since 1965 is located at Mettur (Tamil Nadu).
Bharat Aluminum company ltd (BALCO): It was established in 1965. Its unit at Korba Aluminum
complex, Chhattisgarh obtains bauxite from Phutkapahar region Amarkantak.

15. Market Players
Indian Aluminum industry has been known primarily because of the three major primary producers Nalco, Hindalco and Vedanta. The semi-finished sector is
dominated by the SME sector. The major chunk of India’s Aluminum consumption is driven by power sector and building and construction sector. This has
driven the growth of domestic Aluminum extrusion sector.
Hindalco:Hindalco Industries Limited, an Indian Aluminum and copper manufacturing company, is a subsidiary of the Aditya Birla Group. Its headquarters are at
Mumbai, Maharashtra, India.
It is listed in the Forbes Global 2000 at 895th rank. Hindalco is one of the world's largest Aluminum rolling companies and one of the biggest producers of primary
Aluminum in Asia.
Hindalco produces primary Aluminum products, Aluminum flat rolled products, Aluminum foils and packaging and Aluminum Extrusions.
Nalco:National Aluminum Company Limited, abbreviated as NALCO, is a Navratna (CPSE), having integrated and diversified operations in mining, metal and power
under the ownership of Ministry of Mines, Government of India. Presently, Government of India holds a 51.5% equity in NALCO. It is Headquartered in
Bhubaneswar
NPCIL-NALCO Power Company Limited, Angul Aluminum Park Pvt. Ltd. are its subsidiaries. It is one of the largest integrated Bauxite-Alumina-Aluminum-Power
Complex in the country encompassing bauxite mining, alumina refining, Aluminum smelting and casting, power generation, rail and port operations. Nalco
Produces Aluminum and Aluminum hydrate products.
It has Bauxite Mines located at Panchpatmali hills, Koraput with capacity of 7300,000 TPA and Alumina Refinery located at Damanjodi, Odisha with capacity of
2275,000 TPA. It has Aluminum Smelter located at Angul, Odisha with capacity of 460,000 TPA

16. Market Players
Balco:
BALCO is headquartered at Korba in the state of Chhattisgarh and is a vertically integrated Aluminum producer having its own captive
bauxite mines, captive power plants and smelter.Bharat Aluminum Company Ltd. was an Indian government owned Aluminum producer
under Ministry of Mines, Government of India. In 2000, the Ministry of Mines, Government of India sold it to Vedanta
Resources BALCO Aluminum Plant in Korba, Chhattisgarh state, India.It Produces Wire rods, Ingots and Rolled products.
Vedanta Aluminum:
Vedanta is the largest Aluminum producer in India with a capacity of 2.3 MTPA and a 40% market share in India's Aluminum industry. The
company is headquartered in Jharsuguda, Odisha.Its alumina refinery, located in Lanjigarh, OdishaIt owns 93.9% of MALCO's share capital
and has management control of the company.The company produces Billets rolled products.
Jindal Aluminum:
Jindal Aluminum Limited is India’s largest Aluminum extrusion company. It had its Bangalore, Karnataka
Jindal Aluminum Limited’s products are exported to over 42 countries like US, UK, UAE, Canada, South Africa, Australia
and Saudi Arabia to name a few. Our export performance has been registering a healthy growth.
Jindal produces Aluminum Extrusions and Aluminum flat rolled products.

17. Market Players
P G Foils:PG Foils is a flagship company of Prem Group.PG Foils exports its products to Bangladesh Thailand and Nepal. PG Foils the third-largest
Aluminum-foil maker in the country It produces Aluminum rod, wires, Aluminum Foils and its laminate.
Sacheta Metals LTD:Sacheta metals limited, a Public Limited Company was established in the year 1990. The Registered Office and Manufacturing
Unit of our Company is situated Gujarat (INDIA).It Manufacturers & Exporters Aluminum Utensils, Sheets, Coil Circles and Foils.
MAAN Aluminum:
MAAN Aluminum Ltd formerly known as MAN Aluminum Ltd is a secondary producer of Aluminum in India. India`s largest manufacturer & exporter
of Aluminum Extruded Products, comprising 50% of the country`s exports.The Company’s plant is located in Dhar, Madhya PradeshIt produces range
of aluminum extrusions for electric control panels in various sizes and shapes used in electric devices and switchgears in various specification and ns
aluminum fences that are used in malls and other buildings

18. Market Players
Century extrusions: Century Extrusions Ltd., incorporated in the year 1988, is a Small Cap company (having
a market cap of Rs 104.00 Crore) operating in the Metals - Non-Ferrous sector. CEL’s production facility is
located in Kharagpur (West Bengal). It produces Aluminum extruded products.
Arfin Aluminum: Arfin India Ltd incorporated in the year 199headquarteredarter in Gujrat. Arfin India is a
leading manufacturer, supplier and exporter of Aluminum Wire, Aluminum Wire Rod, Ferro Alloy
Products, Aluminum Ingot and Aluminum Alloy Ingot
It is a prominent name in the Aluminum Recycling and Ferro Alloys segment

19. Demand
Aluminum consumption in India at 2.7 kg per capita is much below the global average of 11 kg per capita.
Demand for the metal is expected to pick up as the scenario improves for user industries, like power,
infrastructure and transportation
The Aluminum industry in India is thriving at an enviable pace considering its growing demand. Export of
primary Aluminum from India has witnessed a rapid rise over the years and the share of exports in
aggregate production has risen to 54% in FY20 from 46% in FY16.
India's Aluminum demand is estimated to double again by the year 2025 with the current resilient GDP
growth rate driven by increasing urbanization and push for boosting domestic infrastructure, automotive,
aviation, defense, and power sectors

20. Supply
Supply of primary Aluminum is in excess as India is one of the largest producers of primary Aluminum. However, due to limited
scope of value addition within the country, primary Aluminum producers export large quantities of primary Aluminum products
and companies import a sizeable quantity of downstream products.
India is a leading player in the global Aluminum industry with the second largest Aluminum production capacity of about 4 million
tonnes per annum (MTPA)
Second, while domestic production of primary Aluminum has been increasing and went up from 1.525 mmt in 2009-10 to 3.694
mmt in 2018- 19, with a slight dip to 3.656 mmt in 2019-20, a majority of primary Aluminum produced in the country is getting
exported as unwrought Aluminum. In 2019-20, this accounted for 53.6% of primary Aluminum produced that year. Indeed,
between 2009-10 and 2019-20, while India produced an additional 2.130 mmt of primary Aluminum, only 0.45 mmt of this
additional production was used domestically for making value added products and the rest was exported. Boosting value addition
domestically brings larger revenues and employment. Even as, therefore, we need to significantly expand domestic primary
Aluminum production and to sharply increase domestic consumption, this needs to be coupled with a far greater level of
domestic value addition

21. Factors Affecting Growth
 Barriers to entry:
Large economies of scale, high capital costs, scarcity of power, land and labour issues.
 Bargaining power of suppliers:
Most domestic players operate integrated plants. Bargaining power is limited in case of power purchase, as Government is the only
supplier. However, increasing usage of captive power plants (CPP) will help to rationalize power costs to a certain extent in the long-term.
 Bargaining power of customers:
Being a commodity, customers enjoy relatively high bargaining power, as prices are determined on demand and supply.
 Competition:
Competition is primarily on quality and price, as being a commodity, differentiation is difficult. However, the recent spate of consolidation
has reduced the competitive pressure in the industry. Further, increasing value addition to Aluminum products has helped some companies
protect themselves from the high volatilities witnessed in this industry.

22. Factors Affecting Growth
Threat of Substitutes:
Copper can replace Aluminum in electrical applications, magnesium, titanium and steel can
substitute for Aluminum in structural and ground transportation uses. Glass, plastic, paper and
steel can substitute for Aluminum in packaging.

23. Technology Affecting Factors
Application of Aluminum in emerging technologies:
Aluminum has been an integral component of the journey of transformation for the construction industry. From skyscrapers to
green buildings, Aluminum is the first choice for architects and builders across the globe. Due to its sustainable nature and
property of being recycled and reused, Aluminum has now become a preferred material for builders who are looking to
implement new technologies in the building and construction sector. Aluminum and its various forms have vast and diverse
applications in the construction industry.
Aluminum Formwork System:
A key application of Aluminum in an emerging technology is the Aluminum formwork system or the MIVAN Technology. This is
a modernized construction system that helps in forming a cast with the help of panels for a concrete structure of the building.
The metal is used in place of traditional shuttering while making framework of the building. This formwork system can be used
in both high and as well as low constructions. The basic structure of a formwork is an extruded Aluminum rail which is welded
to a sheet and finally into a panel. Aluminum formwork systems improve the quality as well as the efficiency of the building.
Aluminum formwork systems significantly reduce the turnaround time for projects by almost half are cost effective and these
panels can be re-used

24. Issue/ Challenges in the Industry
Supply chain and logistics impact: Australia is a major sourcing hub for bauxite. Due to the lockdown and
the halt in bauxite mining, there is an acute feedstock shortage causing unhealthy swing in both metal and
alumina market.
Halt in automotive production:
Due to the lockdown across many countries, automotive shipments were significantly
impacted making an overall impact on the economy. The consumer demands also drastically reduced due
to various uncertainties.
High cost of power & power shortage are the major hurdles in the development of Aluminum industry

25. Issue/ Challenges in the Industry
Production bottlenecks:
Two factors affecting production are,
 Dislocation of power supplies from grid system and.
 Total stoppage of power. Recent trends are that smelters have their own thermal power plants.
Old technology in production: Smelter units which are decades old are more power consuming cost of
production is higher.
Erosion of Profitability: Vast deposits if bauxite recently discovered in east coast of India still lie unutilized.
Controlled prices at which the industry sells Aluminum to state electricity boards are un-remunerative &
cause loss to the industry. The price controls extend to the commercial grade metal also. This erodes the
profitability.

26. Issue/ Challenges in the Industry
Barriers to entry: High cost of input makes it difficult to Indian industries to compete in international
market. Essential raw materials, like cryolite & fluoride are still imported.
Economies of scale: It is difficult to produce Aluminum at low at a small scale since production cost
decreases with the increase in scale (mainly power cost). Huge capital investment is required for setting up
of Aluminum Industry. Small entrepreneurs cannot enter into Aluminum business easily.
Time to set up Aluminum industry is high: Time to set up-a plant of the size of BALCO takes about 3-4
years to become operational.
Control over Bauxite mines: Existing players already have the control over the known bauxite mines in the
country, which leads to the manipulation of ore prices, negatively affecting the industry.
Scarcity of power: Growth of Aluminum industry has been blocked by the power shortage which is one of
the most essential components of production of Aluminum.

27. Issue/ Challenges in the Industry
Government factors: The policies and bureaucratic processes such as environmental clearance, allotment
of bauxite mines have also been responsible for dragging the industry behind.
Land: Existing players can expand easily as setting up brown-field project is easier than a new green field
project. Thus, the prospects for new players in the industry is getting diminished.
International competition: India has got the best grade bauxite pre but the Aluminum production is not at
par with Australia, Canada, France, USA etc.
Non availability of cheap power is also one of the main reasons for the growth impediments of Industry in
India.
Strikes and labor unrests are also hurdles to the growth of Aluminum Industry in India.

28. Critical Factors for Sustainability
Sustainable development remains a formidable challenge to the societies of the 21st century. A number of concepts have been put forward on how to reach
sustainability at a macroeconomic level. These concepts are based on different points of view of economic, social and environmental systems and their behaviour,
and derived their legitimacy from economic and environmental theories. An overriding priority of companies attempting to promote sustainability at enterprise
and sectoral level is to translate these broad concepts and the indicators behind them into specific concepts and measurable indicators useful in day-to-day
business decisions. For companies and sectors, it is important to know what kind of targets and actions will lead them on a path to sustainability. That is true for
economic targets (high profit, high competitiveness, low investment payback, etc.), as for ecological (high life-cycle-wide resource productivity, low toxicity, high
biodiversity, low erosion, etc.) and social targets (from employee satisfaction, a low unemployment rate to overall stability in society).
For internal decision-making, companies and sectors increasingly recognise the value of a detailed and balanced information basis. The advantages of an
integrated approach to social, environmental and economic (triple-bottom-line) business goals have been shown in a variety of publications. In that sense,
sustainability performance information can be useful at different levels: It can support management at the operational level to evaluate and continuously improve
its performance and progress in order to comply with the regulation, to realise cost saving potentials as well at the strategical level, to benchmark the company or
sector against competitors or to give guidance on investment decisions
From an external perspective, industry is facing an increasing demand for sustainability information from different stakeholders and organisations. Examples are:
Financial institutions and insurance companies are increasingly taking triple-bottom-line business performance issues into account. 115 banks from 35 countries
and 84 insurance companies have signed the “UNEP Statement by Financial Institutions on the Environment and Sustainable Development
Governmental organisations and NGOs show a growing interest in the social strand of sustainability: in framing corporate social responsibility (CSR). The number
of initiatives outlining approaches to CSR have rapidly increased over the last 3 years (see the following figure). These initiatives have been led by different national
and international governmental bodies, by business and civil society organisations. Much effort has been expended to agree on standardised information
demands. However, so far just a few tools for sustainable business development have been standardised, like the AA1000 for social auditing

29. Critical Factors for Sustainability
Mining:
Aluminum oxide, or alumina as it is known, is the raw material from which Aluminum metal is produced. Aluminum oxide is produced
from bauxite, an ore mainly found in the tropical and sub-tropical regions of Latin America, South America, Africa and Australia. The world’s
known deposits of bauxite are sufficient to support the current production rate of Aluminum for another 300 years. Much more is available
but beyond this time frame there is little incentive to search for more. The Aluminum industry worldwide takes great care in its mining
operations to reinstate land after the bauxite has been dug out. Open cast methods are usually used to mine bauxite, and great care is
taken to restore and re-vegetate mine sites following the mineral extraction. The residue of the process which separates Aluminum oxide
from the bauxite, known as ‘red mud’ is ultimately cleaned and back-filled to the mine as part of this process. Globally, the area
rehabilitated each year now equals the area being mined.
Waste Management:
27% of bauxite residue (Red mud) utilised as a raw material for cement and construction industry and which includes 66% of bauxite
residue utilised cumulatively at three out of four plant locations. 173% of phosphogypsum re-used for various applications. 100% of
phosphogypsum generated in FY 2019 -20, and 73% of previous year’s phosphogypsum has been utilised. 135% of copper slag utilised for
useful applications. 100% of Copper Slag generated in FY 2019 -20, and 35% of previous year’s Copper Slag has been utilised.
Water Availability:
Zero liquid discharge status achieved at 11 of the 15 operational units. Special Task Forces for Water Management formed for each plant
location. 9.4 million m3 rain water Harvested in FY 2019-20.

30. Critical Factors for Sustainability
Energy Security:
INR 90.98 crore invested in energy conservation equipment and projects. Commissioning of 15.2 MW capacity
renewable power generation across three locations, taking cumulative installed renewable energy capacity to 45.2
MW. Reduced specific process energy consumption by 17% in Aluminum production, as compared to the base year
FY 2011-12
Emissions Achieved:
15% reduction in specific GHG emissions in Aluminum production from the base year of FY 2011-12. Purchased
3,86,695 Renewable Energy Certificates (REC), equivalent to GHG offset of 3,17,090 tCO2 e. Reduction in
particulate matter emissions by 8.62% from FY 2018-19 with various initiatives including upgrading rectifiers of
Electrostatic Precipitator with High Frequency Transformer Rectifier (HFTR)
Community Development:
Touched lives of 1.13 million people belonging to 714 villages across 11 Indian states through community led
initiatives

31. Critical Factors for Sustainability
Green Belt Development:
4,373 acres of green belt developed.
Occupational Health & Safety:
Developed Fatality Prevention Plan to achieve zero fatalities. Developed Crisis Management Plan
in association with National Disaster Response Force (NDRF).
R&D Innovation & Technology:
Launched India’s first Aluminum freight trailer. Launched India’s first Aluminum foil-laminated
jute bags

32. Upcoming Innovations
Higher Emphasis on Essential End-use Sectors like power and packaging. Demand for the metal is expected to pick up as the
scenario improves for user industries, like power, infrastructure and transportation.
Ramp up Recycling Initiatives:
Aluminum requires up to 95% less energy than primary production. Recycling should be given due importance for long-term
sustainability of the industry. Secondary recycling should be promoted to contribute 30-35% of domestic metal requirements in
line with international trend.
Recycling industry may contribute for over 35- 40% of total Aluminum consumption in the country.
Developing the world’s largest Aluminum Park near our Aluminum Smelter at Jharsuguda, which is one of the world’s largest
Aluminum smelters. It will attract hundreds of SMEs in Extrusion, Electrical, Casting, Auto Ancillaries, Packaging, etc.
Future metals:
Recently launched High-Speed Billets, a special billet variant with advanced metallurgical properties to significantly boost
productivity of extruders.

33. Key Reforms in India
India is one of the fastest growing economies in the world. Strong
domestic demand coupled with several reforms that the government has
undertaken, augurs well to maintain the economic growth momentum
going forward. As non-ferrous metals find widespread applications across
the economy, the strong growth in GDP provides a tremendous
opportunity for the development of the Indian non-ferrous metals
industry in the future. A major push is expected to emerge from the
government’s ‘Make in India’ initiative. Under this initiative, the
government has identified 25 sectors such as Automotive, Power, Defence
manufacturing, etc. which have extensive applications of various non-
ferrous metals, and therefore, can provide a boost to the industry. Some
of the key reforms undertaken by the government expected to strengthen
India’s economic prospects in the future are:

34. Key Reforms in India
Make in India:
Aims to develop manufacturing capabilities that are among the best in India by facilitating investment fostering innovation,
enhancing skills development and protecting intellectual property. The Government of India has set a target to increase the
manufacturing sector’s contribution to GDP to 25 per cent by 2025 from the present level of 17 per cent.
Smart Cities:
It is an urban renewal programme by the Government of India with a mission to develop 100 such cities all over the country by
making them citizen-friendly and sustainable. It intends to drive economic growth and improve the quality of life of people by
providing adequate water supply, 24×7 electricity, sanitation, open spaces like parks, playground, variety of transport systems,
sustainable environment and safety and security of the citizenry.
24×7 Power for all:
A joint initiative by Central and State Governments to provide power to households, commercial spaces, industries, agriculture
and any energy-consuming entity.

35. Key Reforms in India
Atmanirbhar Bharat Abhiyaan (Self-Reliant India):
Government of India announced this scheme in May’20 through a special economic package, valued
at INR 20 lakh crore (2 trillion Indian Rupees), is equivalent to approximately 10% of India’s GDP. The
package is aimed at providing the much needed financial & policy support to the cottage industry and
MSMEs in India. Under this package, The package has been devised to give a thrust to local
manufacturing, local markets and local supply-chains-thus propagating Hon’ble PM’s vision of ‘vocal
for local’. The entire scheme focuses on providing impetus to the Make in India initiative and
transforming local Indian companies into global.
Enhancing Private Investments in the Mineral Sector:
Joint Auction of Bauxite and Coal mineral blocks to enhance Aluminum Industry’s competitiveness
will be introduced to help Aluminum industry reduce electricity costs.

36. What to expect from the industry in the coming
5 to 10 years
Aluminum usage in India is likely to grow at a CAGR (compound annual growth ) of 6.7% over the next five years to
reach 4.84 million tonnes by 2026-27.The usage of Aluminum by the transportation sector is set to grow at about
7.2% per annum to reach 1.37 million tonnes by 2026-27.
Aluminium is regarded as a strategic sector for India to move forward. It would support India to boost fuel and cost
efficiency, especially in India. India has achieved remarkable growth in production. In India, 80% of Aluminum is
consumed by construction, transport and electrical sectors which will face demand swings.
The Aluminum industry is very labour intensive and Aluminum production generates huge employment
opportunities the industry has the potential to employ almost 3.5 million people by the year 2015 and 6.7 by the
year 2020 Which will be about 1.1 % of the Indian population and a significantly larger proportion of the work-
force.
The nation has a huge reservoir of Bauxite with a Bauxite reserve, and it needs to increase bauxite production
from 23 million tons in the fiscal year 2019 to nearly 70 million tons by the fiscal year of 2030-2032 to meet the
future demand

37. thankyou